WTI slides below $80.00 as pressures mount on the White House to tap SPR oil reserves

  • Crude oil falls almost 1%, as Democrats pressure US President to act on high gasoline prices.
  • OPEC+ sticks to its 400,000 barrels per day crude oil output, despite the pressures from the US.
  • WTI Technical outlook: A death-cross in the 4-hour chart opens the door for further losses for crude oil prices.

During the New York session, the Western Texas Intermediate (WTI) US crude oil benchmark slides as Democrats increased pressure on the White House to tap the Strategic Petroleum Reserve (SPR) to cap elevated gasoline prices.  At the time of writing, WTI extends its four-day slump, falling 1.07%, trading at $78.89.

According to sources cited by Bloomberg, Energy Secretary Jennifer Gharnholm told CNN that the US President is evaluating the available tools, including a release from the SPR. Market participants said that a release from the US SPR would help in the near term, but it would not solve the problem.

Earlier in the American session, the black gold dipped as low as $78.33 but bounced off, recovering some $0.50 throughout the day.

Meanwhile, OPEC and its allies will be adding 400,000 barrels a day of crude oil each month in the middle east. The cartel is cautious about demand stability in the coming months. Some countries in central and eastern Europe have reimposed restrictions as COVID-19 cases have increased.

WTI Price Forecast: Technical outlook

In the 4-hour chart, WTI is trading within a descending channel, below the simple moving averages (SMA’s), with the 50-SMA just crossing below the 200-SMA, depicting a death-cross. This means that crude oil has a downward bias in the short-term confirmed by the Relative Strength Index (RSI) at 40, aims lower.

The first support level would be November 4 pivot low at $77.61. A breach of the latter would expose the October 7 swing low at $74.74.


Today last price 78.89
Today Daily Change -0.85
Today Daily Change % -1.07
Today daily open 79.74
Daily SMA20 81.78
Daily SMA50 77.29
Daily SMA100 73.63
Daily SMA200 68.83
Previous Daily High 80.48
Previous Daily Low 78.77
Previous Weekly High 83.59
Previous Weekly Low 78.77
Previous Monthly High 84.98
Previous Monthly Low 74.06
Daily Fibonacci 38.2% 79.42
Daily Fibonacci 61.8% 79.83
Daily Pivot Point S1 78.85
Daily Pivot Point S2 77.96
Daily Pivot Point S3 77.14
Daily Pivot Point R1 80.55
Daily Pivot Point R2 81.37
Daily Pivot Point R3 82.26



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hovers around 1.1150 ahead of German GDP, US inflation

EUR/USD is trading around 1.1150, attempting a bounce from 119-months lows of 1.1132. The US dollar eases from multi-month highs amid a return of risk appetite and firmer Treasury yields. US advance Q4 GDP beat estimates with 6.9% YoY. German Prelim GDP and US PCE inflation awaited.


GBP/USD regains 1.3400 on Brexit optimism, US PCE eyed

GBP/USD is extending its rebound from five-week lows above 1.3400 amid an upbeat mood. UK Foreign Secretary Liz Truss eyes significant progress in Brexit talks by February. Report over UK PM Johnson’s future leadership deferred. US PCE inflation in focus. 


Gold rebounds ahead of US PCE inflation, not out of the woods yet Premium

Gold price attempts a bounce as the US dollar retreats ahead of US PCE inflation. After Wednesday’s $40 sell-off, gold price tumbled another $23 on Thursday, as bulls finally surrendered the $1,800 area to hit the lowest level in two weeks at $1,792. 

Gold News

Why Bitcoin has entered a new bear market

Bitcoin price has tumbled to a multi-month low below $33,000, as the leading cryptocurrency loses 50% of its value from its all-time high in November 2021. This marks the second-worst sell-off since the bear market that spanned from 2018 to 2020. 

Read more

US PCE Inflation Preview: Dollar rally has more legs to run Premium

Annual Core PCE inflation is forecast to rise to 4.8% in December from 4.7%. US Dollar Index surged to its highest level in more than a year on Fed's hawkish outlook.  Dollar is likely to continue to outperform its rivals in the near term.

Read more